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I'm trying to download the new upgrade for my iPod touch, but it just doesn't seem to be working. It downloads easily, but when it starts the backing up process, it takes forever. And I'm not just talking about 2 hours. I checked the backup status after each hour, but it had not progressed any further than the B in "Backing up..." Is this normal? Do I need to let it sit for a whole day or is there something that I'm missing. Your thoughts are greatly appreciated!!

If you have access to both a Mac and a PC, try doing the update on the other machine. You can update with any machine, not just the one that your iPod syncs to. Sometimes it works on one when the other is being finicky.

Oh ok it was probably close to 3 hours when I canceled it and it hadn't made it past the B in "Backing." Do you know if hers started out that way and then at a certain point, the bar went across faster? If that makes sense.

Follow the directions on this site. Essentially, you'll download the update to your HD, and then update the phone from the backup on your HD instead of downloading and installing in a single step. It should let you skip the backup process. Once the update is complete, a sync w/ iTunes should restore everything.

'Update' backs up your ipod, upgrades the OS, and then restores everything from the backup.

'Restore' assumes something is wrong with your ipod, so it skips the backup, updates the OS, and then restores everything from the last good backup you have. Since you sync'd right before the restore, you'll have a good backup of your ipod's more recent state.